Today's Question
Marginal Cost (MC) is the additional cost of producing one more unit. It's the cost of the NEXT unit, not the average. If a factory produces 100 phones at total cost $10,000, and 101 phones at total cost $10,150, the marginal cost of the 101st phone is $150. Why is marginal cost (not average cost) the key number for deciding whether to accept a new order?
The model answer will be revealed tomorrow.
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Study Group Responses
2025-12-08
Fordi MC fortæller præcist hvor meget...